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Leaders hope for minimal cuts

Area municipal officials are holding out hope that cuts in local aid proposed by Gov. Deval Patrick might be avoided, or at least offset by other revenue plans developed by state lawmakers.

"My sense is that the legislators realize the significance and importance of local aid," said Lowell City Manager Bernie Lynch. "They've always been there for us, and I would anticipate, and hope, that they would continue to be supporting of maintaining the current levels of local aid."

Patrick announced his plan to close the $540 million budget gap this week after new figures showed that tax revenues for the 2013 fiscal year remain below expectations.

Should the plan be approved by the Legislature next session, it would reduce funding to cities and towns by $9 million, or 1 percent. While the cuts would not affect aid to schools, they would hit municipal services, including police and fire departments.

Tewksbury Town Manager Richard Montouri said wasn't sure how the town would respond to the decrease in funding.

Chelmsford Town Manager Paul Cohen also said he would "sit tight" until he got a better sense of the situation in January.

"We're not going to do anything at this point, because he'd have to get the legislative authority to have that ability to cut local aid. We don't foresee that happening until January," he said.

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Cohen said there will be better information by the time the Legislature returns, including data on December revenues, the overall revenue forecast, and the status of the federal fiscal cliff, all of which would affect if, and how, budget cuts will be implemented.

The 1 percent cut to local aid would total $42, 929 -- what Cohen said that would probably amount to the loss of one full-time position. The town operates on a $110 million budget.

If the Legislature approved the decrease, Cohen said that Chelmsford's local receipts could make up for it. For example, some of the cut in aid could be made up if the motor-vehicle excise tax brings in more than projected.

Tyngsboro Town Administrator Michael Gilleberto said in an email that his town would have to look closely for ways to absorb the reduction, which would amount to $8,174, plus additional cuts to other state programs.

"This number does not include any potential impact we could feel due to reductions to state agency grant programs from which the town receives funding," he said.

Lynch said he understood the difficulties the state is facing with their revenue shortfalls and respects the Patrick-Murray administration for being upfront and cooperative about getting municipalities the aid they need.

He added that the loss of aid would prove problematic, but not detrimental.

"It's very difficult to lose local aid mid-year. Our budgets are done and we don't have a lot of flexibility," Lynch said.

Lowell would stand to lose $213,040.

"Losing that out of a $300 million is not huge, but it's still money," he said.

Like other officials, he said he was hoping the cuts might be avoided, possibly through legislative action.

"We're not panicking, we want to see what the Legislature does, and then we'll have to make the necessary adjustments probably in terms of not fill positions that are vacant, or making some other modifications to our budget to get us through fiscal year 2013," he said.

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